Climate change and sustainable contracting

MAK Contracting Ltd recently researched the contractual risks of green building. The scope of the research included all works carried out in the UK built environment to meet the climate change targets. The observation from the research demonstrated that existing contractual clauses in the construction industry are inadequate for sustainable construction or ‘green building’, because green building introduces additional risks compared to traditional construction, such as breach of warranty for not achieving levels of efficiency for new technologies, or the standard of care being higher than that of a traditional building. There is the risk of green buildings not achieving sustainable design performance, or not obtaining the level of ‘green certification’ that was expected by an employer which can impact quality, price, time, and performance. The research not only highlights contractual risks but commercial risks such as delay, issuing of documentation and also the risks of inadequate insurance policies. 

Working with industry specialists MAK Contracting Ltd are providing expert advice on contractual guidance, peer-reviewing new sustainability clauses and supporting businesses to ensure they are not accepting unreasonable risk.